On May 3, 2020, Blue Company consigned 70 freezers, costing $490 each, to Remmers Company. The cost of shipping the freezersamounted to $920 and was paid by Blue Company. On December 30, 2020, a report was received from the consignee, indicatingthat 35 freezers had been sold for $780 each. Remittance was made by the consignee for the amount due after deducting acommission of 6%, advertising of $200, and total installation costs of $310 on the freezers sold.(Round answers to O decimal places, e.g. 5,275.)(a) Compute the inventory value of the units unsold in the hands of the consignee.tAInventory value $(b) Compute the profit for the consignor for the units sold.Profit on consignment sales(c) Compute the amount of cash that will be remitted by the consignee.Remittance from consignee $+A

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Description: On May 3, 2020, Blue Company consigned 70 freezers, costing $490 each, to Remmers Company. The cost of shipping the freezersamounted to $920 and was paid by Blue Company. On December 30, 2020, a report was received from the consignee, indicatingthat

Consignment sales involve a supplier (consignor) sending goods to a retailer (consignee) who sells…

Business

Accounting

(a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value $ (b) Compute the profit for the consignor for the units sold. Profit on consignment sales $ (c) Compute the amount of cash that will be remitted by the consignee. Remittance from consignee $

(a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value $ (b) Compute the profit for the consignor for the units sold. Profit on consignment sales $ (c) Compute the amount of cash that will be remitted by the consignee. Remittance from consignee $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

On May 3, 2020, Blue Company consigned 70 freezers, costing $490 each, to Remmers Company. The cost of shipping the freezers
amounted to $920 and was paid by Blue Company. On December 30, 2020, a report was received from the consignee, indicating
that 35 freezers had been sold for $780 each. Remittance was made by the consignee for the amount due after deducting a
commission of 6%, advertising of $200, and total installation costs of $310 on the freezers sold.
(Round answers to O decimal places, e.g. 5,275.)
(a) Compute the inventory value of the units unsold in the hands of the consignee.
tA
Inventory value $
(b) Compute the profit for the consignor for the units sold.
Profit on consignment sales
(c) Compute the amount of cash that will be remitted by the consignee.
Remittance from consignee $
+A

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Step 1: Definition of consignment sales

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Step 2: a) Computation of Inventory value

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Step 4: Computation of Remittance

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